chap 22 #3

Production Budget

FitHealth Inc. produces a small and large version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows:

	Bath Scale		Gym Scale
East Region unit sales	24,100		35,600
West Region unit sales	26,000		27,300
Total	50,100		62,900

The finished goods inventory estimated for October 1 for the Bath and Gym scale models is 1,500 and 2,100 units, respectively. The desired finished goods inventory for October 31 for the Bath and Gym scale models is 1,100 and 2,300 units, respectively.

Prepare a production budget for the Bath and Gym scales for the month ended October 31.

FitHealth Inc. Production Budget For the Month Ending October 31

	Units Bath Scale	Units Gym Scale
Expected units to be sold
Less desired inventory, October 31Less estimated inventory, October 1Plus desired inventory, October 31Plus estimated inventory, October 1
Total units required
Less desired inventory, October 31Less estimated inventory, October 1Plus desired inventory, October 31Plus estimated inventory, October 1
Total units to be produced